C.H. ROBINSON WORLDWIDE INC (CHRW) Stock Fundamental Analysis
NASDAQ:CHRW - Nasdaq - US12541W2098 - Common Stock - Currency: USD
Taking everything into account, CHRW scores 6 out of 10 in our fundamental rating. CHRW was compared to 22 industry peers in the Air Freight & Logistics industry. CHRW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHRW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CHRW had positive earnings in the past year.
CHRW had a positive operating cash flow in the past year.
Each year in the past 5 years CHRW has been profitable.
In the past 5 years CHRW always reported a positive cash flow from operatings.
1.2 Ratios
CHRW's Return On Assets of 9.72% is amongst the best of the industry. CHRW outperforms 86.36% of its industry peers.
Looking at the Return On Equity, with a value of 29.29%, CHRW belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
CHRW's Return On Invested Capital of 21.52% is amongst the best of the industry. CHRW outperforms 90.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHRW is significantly above the industry average of 12.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 29.29% | ||
| ROIC | 21.52% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
1.3 Margins
Looking at the Profit Margin, with a value of 2.93%, CHRW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
CHRW's Profit Margin has declined in the last couple of years.
CHRW has a better Operating Margin (4.63%) than 77.27% of its industry peers.
CHRW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.02%, CHRW is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CHRW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | 2.93% | ||
| GM | 16.02% |
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CHRW is creating value.
CHRW has more shares outstanding than it did 1 year ago.
CHRW has less shares outstanding than it did 5 years ago.
CHRW has a better debt/assets ratio than last year.
2.2 Solvency
CHRW has an Altman-Z score of 7.57. This indicates that CHRW is financially healthy and has little risk of bankruptcy at the moment.
CHRW's Altman-Z score of 7.57 is amongst the best of the industry. CHRW outperforms 90.91% of its industry peers.
The Debt to FCF ratio of CHRW is 2.43, which is a good value as it means it would take CHRW, 2.43 years of fcf income to pay off all of its debts.
CHRW has a Debt to FCF ratio of 2.43. This is in the better half of the industry: CHRW outperforms 77.27% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that CHRW is somewhat dependend on debt financing.
The Debt to Equity ratio of CHRW (0.54) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for CHRW, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 7.57 |
ROIC/WACC2.56
WACC8.41%
2.3 Liquidity
CHRW has a Current Ratio of 1.29. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
CHRW's Current ratio of 1.29 is in line compared to the rest of the industry. CHRW outperforms 45.45% of its industry peers.
CHRW has a Quick Ratio of 1.29. This is a normal value and indicates that CHRW is financially healthy and should not expect problems in meeting its short term obligations.
CHRW's Quick ratio of 1.29 is in line compared to the rest of the industry. CHRW outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 55.16% over the past year.
CHRW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.49% yearly.
The Revenue has decreased by -0.22% in the past year.
CHRW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.97% yearly.
EPS 1Y (TTM)55.16%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%36.05%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-8.29%
3.2 Future
The Earnings Per Share is expected to grow by 7.99% on average over the next years.
The Revenue is expected to grow by 2.22% on average over the next years.
EPS Next Y6.31%
EPS Next 2Y11.19%
EPS Next 3Y9.11%
EPS Next 5Y7.99%
Revenue Next Year-7.1%
Revenue Next 2Y-1.35%
Revenue Next 3Y0.9%
Revenue Next 5Y2.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CHRW is valuated rather expensively with a Price/Earnings ratio of 20.38.
CHRW's Price/Earnings ratio is in line with the industry average.
CHRW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.62 indicates a rather expensive valuation of CHRW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHRW indicates a somewhat cheap valuation: CHRW is cheaper than 72.73% of the companies listed in the same industry.
CHRW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 17.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHRW.
77.27% of the companies in the same industry are more expensive than CHRW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHRW does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CHRW may justify a higher PE ratio.
PEG (NY)3.23
PEG (5Y)13.71
EPS Next 2Y11.19%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
CHRW has a Yearly Dividend Yield of 2.66%.
Compared to an average industry Dividend Yield of 3.93, CHRW pays a better dividend. On top of this CHRW pays more dividend than 86.36% of the companies listed in the same industry.
CHRW's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of CHRW has a limited annual growth rate of 4.17%.
CHRW has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CHRW decreased in the last 3 years.
Dividend Growth(5Y)4.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CHRW pays out 58.59% of its income as dividend. This is a bit on the high side, but may be sustainable.
CHRW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.59%
EPS Next 2Y11.19%
EPS Next 3Y9.11%
98.03
-1.11 (-1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners97.21%
Inst Owner Change1.4%
Ins Owners0.82%
Ins Owner Change1.59%
Market Cap11.64B
Analysts73.13
Price Target112.99 (15.26%)
Short Float %5.09%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend2.5
Dividend Growth(5Y)4.17%
DP58.59%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.84%
Min EPS beat(2)6.62%
Max EPS beat(2)9.07%
EPS beat(4)4
Avg EPS beat(4)10.71%
Min EPS beat(4)6.62%
Max EPS beat(4)17.6%
EPS beat(8)6
Avg EPS beat(8)4.49%
EPS beat(12)7
Avg EPS beat(12)1.55%
EPS beat(16)10
Avg EPS beat(16)4.64%
Revenue beat(2)0
Avg Revenue beat(2)-7.15%
Min Revenue beat(2)-7.38%
Max Revenue beat(2)-6.93%
Revenue beat(4)1
Avg Revenue beat(4)-4.18%
Min Revenue beat(4)-7.38%
Max Revenue beat(4)0.6%
Revenue beat(8)2
Avg Revenue beat(8)-3.68%
Revenue beat(12)2
Avg Revenue beat(12)-4.73%
Revenue beat(16)6
Avg Revenue beat(16)-1.15%
PT rev (1m)1.16%
PT rev (3m)-3.32%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-3.28%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-7.05%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-6.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 17.62 | ||
| P/S | 0.67 | ||
| P/FCF | 20.02 | ||
| P/OCF | 17.92 | ||
| P/B | 6.71 | ||
| P/tB | 42.04 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)4.81
EY4.91%
EPS(NY)5.56
Fwd EY5.68%
FCF(TTM)4.9
FCFY5%
OCF(TTM)5.47
OCFY5.58%
SpS146.21
BVpS14.61
TBVpS2.33
PEG (NY)3.23
PEG (5Y)13.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.72% | ||
| ROE | 29.29% | ||
| ROCE | 27.13% | ||
| ROIC | 21.52% | ||
| ROICexc | 22.5% | ||
| ROICexgc | 46% | ||
| OM | 4.63% | ||
| PM (TTM) | 2.93% | ||
| GM | 16.02% | ||
| FCFM | 3.35% |
ROA(3y)10.27%
ROA(5y)10.53%
ROE(3y)39.83%
ROE(5y)37.63%
ROIC(3y)23.45%
ROIC(5y)21.78%
ROICexc(3y)25.06%
ROICexc(5y)23.32%
ROICexgc(3y)62.88%
ROICexgc(5y)54.03%
ROCE(3y)30.15%
ROCE(5y)28.01%
ROICexcg growth 3Y0.83%
ROICexcg growth 5Y-1.15%
ROICexc growth 3Y-4.51%
ROICexc growth 5Y-1.82%
OM growth 3Y-2.93%
OM growth 5Y-3.65%
PM growth 3Y-10.41%
PM growth 5Y-6.96%
GM growth 3Y4.57%
GM growth 5Y-1.58%
F-Score7
Asset Turnover3.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 68.63% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.95% | ||
| Profit Quality | 114.45% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 7.57 |
F-Score7
WACC8.41%
ROIC/WACC2.56
Cap/Depr(3y)99.97%
Cap/Depr(5y)86.13%
Cap/Sales(3y)0.47%
Cap/Sales(5y)0.41%
Profit Quality(3y)150.71%
Profit Quality(5y)108.59%
High Growth Momentum
Growth
EPS 1Y (TTM)55.16%
EPS 3Y-10.66%
EPS 5Y1.49%
EPS Q2Q%36.05%
EPS Next Y6.31%
EPS Next 2Y11.19%
EPS Next 3Y9.11%
EPS Next 5Y7.99%
Revenue 1Y (TTM)-0.22%
Revenue growth 3Y-8.45%
Revenue growth 5Y2.97%
Sales Q2Q%-8.29%
Revenue Next Year-7.1%
Revenue Next 2Y-1.35%
Revenue Next 3Y0.9%
Revenue Next 5Y2.22%
EBIT growth 1Y58.41%
EBIT growth 3Y-11.13%
EBIT growth 5Y-0.79%
EBIT Next Year14.83%
EBIT Next 3Y10.07%
EBIT Next 5Y5.86%
FCF growth 1Y-67.5%
FCF growth 3Y160.19%
FCF growth 5Y-11.11%
OCF growth 1Y-66.15%
OCF growth 3Y73.8%
OCF growth 5Y-9.8%